Electronic trading, sometimes called e-trading, is a method of trading securities (such as stocks and bonds), currencies, exchange traded derivatives and other financial instruments via distributed data networks—electronically. Electronic trading generally uses information technology systems, such as the internet and proprietary networks, to bring together buyers and sellers on electronic trading platforms to create virtual market places which augment or connect with existing trading systems. NASDAQ, NYSE, Arca and Globex are examples of markets which are augmented with and/or strongly interconnected to electronic trading systems. Exchanges that facilitate electronic trading in the United States are regulated by the Securities and Exchange Commission or [SEC] and are generally called electronic communication networks or ECNs.
The foreign exchange market (Forex, or FX) is where currency trading takes place. Forex trading is defined as the simultaneous buying of one currency, and selling of another. The currency of one country is exchanged for that of another. The currencies may be traded in pairs such as US-Dollar/Japanese-Yen, Euro/US-Dollar, Brazilian-Real/Jordanian-Dinar and so on.
At or about 1996, on-line retail Forex trading became practical. Internet-based market makers would take the opposite side of retail trader's trades. These companies also created a retail Forex platform that provided a quick and easy way for individuals to buy and sell on the Forex spot market
Nowadays, one can trade virtually any financial instrument, online, through a variety of electronic trading service providers. In order to trade, however, one must be connected to the appropriate service provider and have an agreement and account with said service provider. A stand alone interface, which anyone can walk up to, deposit funds in and trade on, is yet unknown.
At the same time, a plethora of gaming sites is available online. Anyone who so desires can connect to such a site and play virtually any known game of chance for money. Again, in order to play one must be connected to the appropriate gaming service provider and must have an agreement and account with said gaming service provider. Unlike the previous example, stand alone interfaces to which anyone can walk up to, deposit funds and play, are readily available.
Most games of chance are based on a random element/event/outcome, which determines whether a game participant wins or losses. This element can be a slot where a ball falls (Roulette), a random card (Blackjack, poker etc.), a roll of dice (craps), a combination of reel spins (Slots), a combination of numbered balls drawn randomly from a large group (Keno or Bingo) or any other unpredictable random event. Therefore, as the determining event is completely random, a participant in such a game has little to no control over his chances of winning and is left to depend on good fortune to gain money from the game.
Another form of gaming available online is based on exterior events, which are not random but at the same time are not easily predictable. In these forms of games the outcome of an exterior event determines whether the participant wins or losses. An example of such gaming is sports betting. As the outcome of sporting events is not random, so a participant in such a game can improve his chances of winning the more he/she knows about the event. Such gaming is also available based on non-sporting events. For example, one can bet online who will win a particular award (e.g. Oscar for Best Picture), what will be the first commercial aired during the Superbowl or even who will win an election. A game, however, where the determining event is the behavior/trade details of a specific financial instrument on a specific market, is unknown.